Hawaiian Airlines, Inc.

Order 2007-10-5
OST-2007-26781

Issued and Served October 3, 2007

Consent Order

This consent order is the result of an investigation by the Office of Aviation Enforcement and Proceedings which revealed the failure of Hawaiian Airlines, Inc. to provide on-time performance information to consumers in violation of 14 CFR Part 234 and 49 U.S.C. § 41712. This order directs Hawaiian to cease and desist from future similar violations of Part 234 and section 41712, and assesses the carrier $50,000 in civil penalties.

The Enforcement Office’s investigation revealed a lack of compliance with section 234.11 by Hawaiian. In a recent telephone survey conducted by this office, Hawaiian reservation agents failed to provide the requested on-time performance information in a number of calls. In those calls where answers were provided, Hawaiian reservations agents gave varying on-time performance information for the same flight.

In mitigation, Hawaiian states that any non-compliance with the section 234.11 was purely unintentional. Hawaiian points out that its on-time performance is consistently among the best of all the airlines that report on-time performance information. Consequently, according to the carrier, it has every incentive to disclose the information to all customers reasonably requesting it. Hawaiian believes this compliance issue can be addressed through improved training and retraining of its reservation agents. Hawaiian states that it already has initiated a multi-pronged program designed to remedy any problem concerning the disclosure of on-time performance information. First, according to Hawaiian, it has implemented a special training program describing how to comply with Hawaiian’s obligation to report on-time performance information to all new and experienced call center reservation agents. Second, Hawaiian states that it has implemented a similar training program for customer service representatives at airports who interact with the public on matters concerning reservations and flight information. Third, Hawaiian states it will self-audit the performance of its call center reservation agents to determine the effectiveness of its training program. Fourth, Hawaiian points out that it has revised the manuals used by its customer service personnel at airports, the Passenger Service Manual, and by its call-center reservation agents, the Focus Manual, to provide more specific direction concerning Hawaiian’s obligation to provide on-time performance information. Fifth, Hawaiian states that it has developed a notice for its reservation agents explaining Hawaiian’s obligation to disclose on-time performance information and how to provide the information upon request that appears on reservation agents’ screens on a quarterly basis.

Hawaiian also states that it plans to make on-time performance information more available to the public generally, including posting a link to the Bureau of Transportation Statistics website on Hawaiian’s own website, informing callers to its Interactive Voice Response system about the availability of on-time performance information through Hawaiian’s website, and sending an email about the disclosure of on-time performance information to travel agents.

Despite the existence of these mitigating factors, we view seriously Hawaiian’s failure to disclose on-time performance information as required by Part 234. Accordingly, after carefully considering all of the facts in this case, including those set forth above, the Enforcement Office believes that enforcement action is warranted. By this order, the Department finds that Hawaiian failed to disclose the on-time performance of its flights in violation of 14 CFR Part 234 and 49 U.S.C. § 41712. In order to avoid litigation, and without admitting or denying the violations described above, Hawaiian agrees to settle these matters with the Enforcement Office through the issuance of this consent order directing it to cease and desist from future similar violations of Part 234 and 49 U.S.C. § 41712 and assessing it $50,000 in compromise of potential civil penalties that are otherwise payable and due. Of this amount, $25,000 shall be due and payable with 15 days of the date of the issuance of this order. The remaining $25,000 shall be suspended for 12 months following the service date of this order and then forgiven unless Hawaiian violates this order’s cease and desist or payment provisions during this time period, in which case the suspended $25,000 will become due and payable immediately and the carrier will be subject to further enforcement action. We believe that this compromise assessment is appropriate and serves the public interest. It represents an adequate deterrence to future noncompliance with the Department’s on-time disclosure requirements by Hawaiian, as well as by other domestic air carriers.

By: Rosalind Knapp